Former Secretary to President and Cabinet Lloyd Muhara and businessman Leston Mulli have been charged with abuse of office and conspiracy to defraud.
Meanwhile, the two suspects have been granted bail.
The state alleges that that Muhara and Mulli who is Managing Director of Mulli Brothers Limited (MBL), in 2019, signed contract allowing Mulli Brothers Limited to repay a K5 billion loan in installments of K5 million every month, which meant the company would have repaid the loan over a period of 50 years. This is the loan MBL took from Malawi Savings Bank before the bank was sold by Government.
State Prosecutor Levison Mangani said the state will provide a substantive charge sheet and the number of witnesses.
Defence lawyer Frank Mbeta applied for bail and Chief Resident Magistrate Madalitso Chimwaza granted it.
Chimwaza said the two should pay a K500,000 cash Bond, one surety bonded at K10 million, appear at area 30 Police headquarters once every fortnight and should not to interference with state witnesses.
The two suspects were arrested yesterday, weeks after Attorney General Thabo Chakaka Nyirenda, in a letter dated May 11, 2022, reported Muhara and others to Inspector General of Police and Director of Public Prosecutions (DPP) for allegedly abusing their offices.
According to the letter, Muhara and others allegedly committed crimes by instructing lawyers representing Malawi Savings Bank (MSB) Debt Collection Company to withdraw enforcement of bankruptcy proceedings it obtained against MBL.
Government set up the debt collection company to collect toxic loans following the sale of the bank.
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